Unilever will cut 1,500 jobs during its reorganization

Unilever is making changes to its organizational model to make it “a simpler, more category-focused business”, which includes cutting thousands of jobs in 100 countries.

The company will move away from its current matrix structure and will be organized around five distinct Business Groups: Beauty & Wellbeing, Personal Care, Home Care, Nutrition and Ice Cream. Each Business Group will be fully responsible for its strategy, its growth and the realization of its profits on a global scale.

Alan Jope, CEO of Unilever, explains: “Our new organizational model has been developed over the past year and is designed to continue the acceleration we are seeing in the performance of our business. Moving to five category-focused business groups will allow us to be more responsive to consumer and channel trends, with crystal clear accountability for delivery. Growth remains our top priority and these changes will support our pursuit of that goal. »

To enable Unilever to benefit from its global scale and capabilities, the five Business Groups will be supported by Unilever Business Operations, which will provide the technology, systems and processes needed to drive operational excellence across the business. A lean Unilever Corporate Center will continue to define Unilever’s overall strategy.

Dismissals

The proposed new organizational model will result in a reduction of senior management positions by approximately 15% and more junior management positions by 5%, which equates to approximately 1,500 positions worldwide. Changes will be subject to consultation. Unilever does not expect factory teams to be impacted by these changes.

Direction changes

Following the new configuration, Unilever is making changes to its management team:

  • Fernando FernandezEVP Latin America, was named President Beauty & Wellbeing, which includes Hair Care, Skin Care, as well as Vitamins, Minerals and Supplements, and Unilever Prestige.
  • Fabien Garciapresident North America, was named president of personal care, responsible for skin cleansing, deodorants and oral care.
  • Pierre ter Kulve will continue in his role as President Home Care, responsible for Fabric Care, Home & Hygiene, and Water & Air.
  • Hanneke FaberPresident Foods & Refreshment, has been named President Nutrition, which will house Scratch Cooking, Healthy Snacking, Functional Nutrition, Plant-Based Meat and Food Solutions.
  • Matt CloseEVP Ice Cream, has been appointed President Ice Cream, Business Group in its own right.

These appointments are effective as of April 1, 2022.

As well:

  • Nitin ParanjpeChief Operating Officer (COO), will take on a new role as Chief Transformation Officer & Chief People Officer, leading the transformation of the business and leading the HR function.
  • Reginaldo EcclissatoDirector of Supply Chain, will lead Unilever’s supply chain and business operations as Director of Business Operations.
  • sunny jain, President Beauty & Personal Care, has decided to leave Unilever to create a technology megatrend investment fund. Other members of the Unilever Leadership Executive (ULE) will remain in office, including Sanjiv Mehta who will retain executive leadership of Hindustan Unilever.

All costs related to the implementation of the new organization will be managed within the framework of the existing restructuring investment plans.

Aubrey L. Morgan